Comcast Announces New 'Peacock' Streaming Service

Summary

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Podcast Summary: WSJ Your Money Briefing

Episode: Comcast Announces New 'Peacock' Streaming Service
Date: September 18, 2019
Host: J.R. Whalen (Wall Street Journal)
Guest: Joe Flint (WSJ Entertainment Reporter)

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Overview

In this episode, host J.R. Whalen speaks with WSJ entertainment reporter Joe Flint about Comcast's announcement of its new streaming platform, Peacock. The discussion centers on what sets Peacock apart in an increasingly crowded streaming landscape, its content offerings, pricing strategies, and how legacy media companies are maneuvering in response to the dominance of Netflix and the evolving habits of streaming audiences.

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Key Discussion Points & Insights

The Launch of Peacock: Context and Content

• Peacock will debut in April (2020) as NBCUniversal’s entry into the streaming wars, offering a mix of classic and original programming.
• The service distinguishes itself by leveraging NBC’s extensive content library but is not limited to NBC-only programming.
  • Joe Flint: “They have acquired other shows that weren't on NBC, such as Everybody Loves Raymond, which of course aired on CBS for a lot of years. They are looking to create a very broad service...” (02:27)

Not Just NBC Shows

• Peacock aims for breadth in content, acquiring popular classic sitcoms from outside networks as these libraries are key subscriber draws across all platforms.
• There will be reboots of popular NBC shows, including a new "Saved by the Bell" and another reboot of "Battlestar Galactica."
  • Joe Flint: “A reboot of Battlestar Galactica, which...we think this is the third Battlestar Galactica show...sci-fi shows have big core audiences.” (03:15)

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Star Power & Original Content

• Peacock has enlisted notable celebrities and creators to bolster its original offerings.
  • Alec Baldwin and Christian Slater co-starring in "Dr. Death," based on a true crime podcast.
  • Demi Moore signed on for "Brave New World," an adaptation of the novel.
  • NBC’s late-night personalities Jimmy Fallon and Seth Meyers developing new shows.
  • Lorne Michaels producing a behind-the-scenes SNL series.
  • Mike Schur, acclaimed for "The Office" and "The Good Place," creating a new show starring Ed Helms.
  • Joe Flint: “They’ve been bringing in a lot of talent and I expect we’ll see more as they get closer to a launch next spring.” (04:03)

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Bidding Wars Over Library Content

• With the streaming wars intensifying, legacy shows like "The Office" and "Friends" have triggered expensive bidding battles.
  • NBC reportedly paid $500 million for exclusive streaming rights to "The Office" for five years.
  • Netflix secured "Seinfeld" streaming rights for a similar amount; Hulu previously held them.
  • Warner Bros. spent hundreds of millions for "Big Bang Theory" and "Friends" for HBO Max.
  • Joe Flint: “There is a big bidding war now for a lot of this older content... There's a gold mine out there for some of these older TV shows.” (05:17)

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Shifts in the Streaming Landscape & Industry Strategy

• Traditional media companies moved from selling content to Netflix to launching their own services to maintain control and relationships with consumers.
  • This shift is driven by Netflix’s explosive growth and increasing competition for audience attention.
  • Joe Flint: “As Netflix grows and grows and takes away viewers from other platforms, these guys decided...‘Hey, we need to stop being so friendly with these guys and create our own platforms and build our own direct to consumer relationships.’” (06:17)
• Apple’s upcoming service will be original-content focused, eschewing the vintage library route, while other platforms rely heavily on established shows and franchises.

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Comcast's Delayed Entry & Unique Position

• Comcast, NBCUniversal’s parent, is a major cable provider (~21.5 million subscribers), leading to a cautious approach in embracing streaming to protect its traditional business.
  • Peacock will be free for Comcast subscribers and possibly other cable customers if deals are struck.
  • The strategy aims to balance growth in streaming with retention of their cable base.
  • Joe Flint: “Comcast wants to be in the streaming game ... but they don’t want to alienate or undercut their own business model. So it’s complicated for them.” (07:27)

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Subscription Fatigue, Bundling, and Consumer Costs

• With so many platforms, consumers risk duplicating the costs of cable with separate subscriptions.
  • Disney+ Starting at $6.99, Apple TV+ at $4.99, NBC’s Peacock expected to be $5–$7, planning to keep prices competitive.
  • Joe Flint: “A new bundle is being created... Before you know it, your streaming bill may be just as big as your cable bill.” (08:46)

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Notable Quotes & Memorable Moments

• "Having a good library of reruns and classic TV shows that have aged well is very important for all these platforms."
  — Joe Flint (02:27)
• "I mean, some of them are pretty cheap... NBC will probably be under $10. I'd be willing to bet that they will be somewhere between that 5 and $7 range."
  — Joe Flint (09:38)
• “Part of it is, of course, the success Netflix has had and how fast they’ve grown... these guys decided, hey, we need to stop being so friendly with these guys and create our own platforms.”
  — Joe Flint (06:17)

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Timestamps for Important Segments

• [02:27] – Peacock’s content diversity: classic and non-NBC shows
• [03:15] – Announcing reboots of "Saved by the Bell" and "Battlestar Galactica"
• [04:03] – Star-studded original programming and talent
• [05:17] – Bidding wars for classic shows; details on "The Office" and others
• [06:17] – Why media companies are ending Netflix partnerships
• [07:27] – Comcast’s difficult balancing act with cable and streaming
• [08:46] – Subscription fatigue, pricing predictions, and the ‘new bundle’

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Episode Tone

The conversation is informative with a lightly conversational tone, mixing business analysis and accessible analogies (“a sea change,” “a gold mine out there for some of these older TV shows,” “a new bundle is being created”). Joe Flint provides straight-forward, candid insights on both the excitement and the practical complications facing both consumers and companies in the streaming video era.

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Transcript

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[J.R. Whalen]

Here's your Money briefing. I'm J.R. whalen at the Wall Street Journal in New York. A day after Netflix scored the streaming rights to Seinfeld, Comcast announced plans to roll out its own streaming service with classic NBC shows and new programming as well. We'll check in with the Journal's entertainment reporter for details, including what it's going to cost you, in a moment. First, some money and market news you should know. Remember the government shutdown last winter? It and the previous two shutdowns cost taxpayers about $4 billion. A bipartisan Senate committee ran the numbers and determined that most of it was for back pay for furloughed federal workers. The rest was for extra administrative work and late fees on interest payments. The deadline to fund the government is on September 30, and feminine care products manufacturer Kimberly Clark hopes to capitalize on on consumers growing interest in natural products and sustainability. It has invested $25 million in startup Thinx, which makes reusable period underwear. Thinx launched in 2015 with $50 million in sales last year. Currently, a pair of Thinx reusable underwear sells for about $35 each. With Kimberly Clark's investment, Thinx says that prices could come down to about $17 and give it access to more retailers like Target and Walmart. A new streaming service is coming and it's bringing a hefty slate of Star Power Comcast. NBCUniversal division will launch Peacock, named for the network's logo, in April. It's the latest in a crowded field with one common goal give Netflix a good fight. Wall Street Journal entertainment reporter Joe Flynt joins us from Los Angeles with more. So Joe Peacock will have a mix of original and classic movies and TV shows. Will they only be NBC shows?

[Joe Flynt]

Well, no, actually they won't in terms of the classic shows you mentioned. They have acquired other shows that weren't on NBC, such as Everybody Loves Raymond, which of course aired on CBS for a lot of years. They are looking to create a very broad service and, and they wanna have shows primarily, of course, there'll be NBC shows. Those are the easiest ones for them to go out and get the rights to and acquire. But I don't think they wanna limit themselves to that when it comes to the reruns. Because as crazy as it sounds, having a good library of reruns and classic TV shows that have aged well is very important for all these platforms.

[J.R. Whalen]

And there'll be reboots of popular NBC shows from a few decades ago as well.

[Joe Flynt]

We are going to get a new Saved by the Bell and pun Brewster. I know a lot of people have been waiting for that one. And also a reboot of Battlestar Galactica, which, you know, I think we were trying to figure this out earlier today, me and some of my colleagues, but we think this is the third Battlestar Galactica show. Not entirely sure, but either way, the sci fi shows have big core audiences. And you know, when you think about CBS all access, their streaming service, what was the first big show they did, first original show, a Star Trek series. So, you know, and if that can bring in some people to subscribe to the NBC service, I think it's a good bet.

[J.R. Whalen]

Now, in terms of actors and directors and producers, what sort of a list celebrities have signed on?

[Joe Flynt]

Not so bad, actually. Alec Baldwin and Kristen Slater are going to co star in a series called Dr. Death, which is based on a true crime podcast. Demi Moore has signed up to do Brave New World, based on that novel. They have. A lot of the NBC talent is agreeing to make new content for the platform, including the late night stars Jimmy Fallon and Seth Meyers. They're going to oversee some new shows. Lorne Michaels, of course, the guru of all things Saturday Night Live, is going to work on a show that's basically sort of a behind the scenes of Saturday Night Live, how the sausage gets made there type show. Mike Scher, who's one of their most prolific and successful producers who worked on the Office and most recently the Good Place, he's making a new show for the streaming service starring Ed Helms. So they've been bringing in a lot of talent and I expect we'll see more as they get closer to a launch next spring.

[J.R. Whalen]

You mentioned NBC spending to reacquire the streaming rights to some of its shows. They've been spending. They've been going deep into their pockets to get the rights to these shows.

[Joe Flynt]

Well, there is a big bidding war now for a lot of this older content and for NBC, you know, the Office, which has been on Netflix for many years and very popular there, getting the Office for their own streaming service was seen as very important for them. So, yeah, they shelled out around 500 million for a five year deal for the exclusive streaming rights to the Office and Netflix earlier this week did a deal to get Seinfeld streaming rights globally. Seinfeld had been on Hulu and now Netflix will have it. And they spent a similar amount. We've seen Warner Brothers with their service HBO Max, spend heavily on the Big Bang Theory and Friends, both of those deals, you know, several hundred million dollars each. So there's a gold mine out there for some of these older TV shows.

[J.R. Whalen]

You know, one by one, the major content providers have launched or plan to launch streaming services. This is like a sea change compared to just a couple of years ago.

[Joe Flynt]

It's interesting. Part of it is, of course, the success Netflix has had and how fast they've grown. And for a while, the Walt Disney companies and the Warner Brothers and the NBC Universals, they were very content to sell a lot of their shows to Netflix. They made original shows for Netflix. It was a beneficial relationship. But as Netflix grows and grows and takes away viewers from other platforms, these guys decided, hey, we need to stop being so friendly with these guys and create our own platforms and build our own direct to consumer relationships. And that's what we see now. And maybe five or 10 years from now there'll be a weaning of this. And we haven't even talked about Apple, which is of course getting into this game as well with, you know, they're going to launch in November with, you know, a handful of original shows. They're not spending as of yet big money for vintage TV shows or library fair. They're banking on new original shows with big stars and big budgets to bring people in.

[J.R. Whalen]

You know, a lot of streaming services exist and many are to come. It seems like NBC, given its stature in the industry, seems like they're a little late coming to this game.

[Joe Flynt]

They are a little late. I mean, they will certainly be launching later than the others, as will HBO Max. One of the reasons that NBC in my opinion is late is they're owned, as you mentioned, they're owned by Comcast. And Comcast, of course, is a huge cable operator, 21.5 million subscribers in the United States. So they have a tricky balancing act here. Comcast wants to be in the streaming game, of course, they want to have direct to consumer relationships and platforms, but they don't want to alienate or undercut their own business model. So it's complicated for them. That's why this service they're launching, it's actually going to be free for Comcast subscribers. And I think Ultimately, they'll want to make it possible to have other people who subscribe to other cable services get it for free as well. I subscribe to Spectrum, which out in Los Angeles, and in theory, if they're successful, they'll work out some sort of deal with Spectrum where I will be able to sign up as a cable subscriber and get access to Peacock, the name of the NBC service.

[J.R. Whalen]

Are all these companies still trying to figure out how much money people are willing to spend and what, what kind of packages they want to take on? And really coming down to, what are the viewers looking for?

[Joe Flynt]

Well, viewers are always looking to spend less and get the most for their money. And that's the funny thing. Everyone's always looked at this world of streaming as a way to break up the traditional cable bundle, as we call it. And yet a new bundle is being created. I mean, you don't have to subscribe to all these things, but if you love Netflix original shows, you're going to want to have Netflix. And then you might want some stuff from Disney, especially if you have a family. And then there's, you know, then there's NBC and maybe you want, you know, some stuff from. From there as well. Before you know it, your streaming bill may be just as big as your cable bill.

[J.R. Whalen]

And beyond price, there's a streaming question of just how much is too much. You know, it's been well documented in the Wall Street Journal by our personal tech team that people can feel like they're drowning and having just too many services. Too many apps on their device.

[Joe Flynt]

Well, certainly too many apps on their device, too much money going out of their bank account. We don't even see it now because of course, we set up these accounts with these companies that just take the money right out for us there. Yeah, I think at some point there will be this sort of, sort of reckoning of how much is too much. Can the market support all these services? I mean, some of them are pretty cheap. I mean, Disney is starting out with 699. Apple is 499amonth. NBC will probably be under $10. I'd be willing to bet that they will be somewhere between that 5 and $7 range. So that's the thing. And they keep these things reasonably priced enough that people will subscribe to them. That'll be the big question.

[J.R. Whalen]

All right, and that's Wall Street Journal entertainment reporter Joe Flynt joining us from Los Angeles. Joe, thanks for coming on the show.

[Joe Flynt]

Thanks for having me.

[J.R. Whalen]

And that's your money briefing. I'M JR Whalen in New York for the Wall Street Journal.

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